Digital Enterprise Industrie 4.0 and Digitalization for process idustries. Thomas Andersson 2 June 2016 COMOS Expert Forum meeting Gothenburg

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Digital Enterprise Industrie 4.0 and Digitalization for process idustries Thomas Andersson 2 June 2016 COMOS Expert Forum meeting Gothenburg siemens.com/digitalization

Hej! Seite 2

Megatrends Challenges that are transforming our world Globalization The volume of world trade nearly doubled between 2005 and 2014. 1 Urbanization By 2050, 70 percent of the world's population will live in cities (today it s 54 percent). 3 Demographic change The earth s population will increase from 7.3 billion people today to 9.7 billion in 2050. Average life expectancy will then be 83 years. 2 Digitalization By 2020, the digital universe will reach 44 zettabytes a tenfold Seite 3 Climate change According to scientists, in the summer of 2015, the Earth's atmosphere had the highest CO 2 concentration in 800,000 years. 4 increase from 2013. 5 Sources: 1. UNCTAD Statistics, Values and shares of merchandise exports and imports from 1948 to 2014, November 10, 2015 2. United Nations, Department of Economic and Social Affairs, Population Division (2015). World Population Prospects: The 2015 Revision, Key Findings and Advance Tables.Working Paper No. ESA/P/WP.241 3. United Nations, World Urbanization Prospects. The 2014 Revision, New York, published 2015 4. SCRIPPS INSTITUTE OF OCEANOGRAPHY, The Keeling Curve, November 11, 2015 5. IDC, The Digital Universe of Opportunities: Rich Data and the Increasing Value of the Internet of Things, April 2014

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Time to double standard of living 350 years 30 years Seite 7

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From Industry 1.0 to Industry 4.0 First Industrial Revolution Based on the introduction of mechanical production equipment driven by water and steam power 1.0 1784: First mechanical loom 1800 1900 2000 2025 Time Seite 13

siemens.com/history Seite 14

My dynamo will drive a revolution in the way that Industry works Werner von Siemens to his brother William circa 1866 Seite 15

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Adoption of electrical power finally hit the tipping point in the mid-1920 s Seite 17

From Industry 1.0 to Industry 4.0 First Industrial Revolution Based on the introduction of mechanical production equipment driven by water and steam power Second Industrial Revolution Based on mass production achieved by division of labor concept and the use of electrical energy (electrification) 2.0 1784: First mechanical loom 1870: First conveyor belt, Cincinnati slaughterhouse, 1908: Ford T-Model 1800 1900 2000 2025 Time Seite 18

Control was realized with electromechanical systems which used relay logic controllers already as early as 1920s Five hours to find it and five minutes to fix it Manual relay panels from the early 1960s 1920s Time Seite 19 Source: History of Control and History of PLC and DCS, Vanessa Romero Segovia and Alfred Theorin, 2013-07-26, Lunds University, Sweden

Hardwired analogue devices Adding loops independent of existing but limited by space Physical semi mechanical fixed location user interface Reliability challenges with MTBF of 50-100 hrs. Example from a control room The 1950s - The Pioneering Period Time Seite 20 Source: History of Control and History of PLC and DCS, Vanessa Romero Segovia and Alfred Theorin, 2013-07-26, Lunds University, Sweden

1956 Product development using the recently invented transistor Paris machine tool fair in 1959 Siemens proudly presents the first generation of its Building-Block System for Solid-State Controls: the SIMATIC G 1959 Time Seite 21 Source: History of Control and History of PLC and DCS, Vanessa Romero Segovia and Alfred Theorin, 2013-07-26, Lunds University, Sweden

Used to perform control Replace program instead of re-wire Expensive so applicable to replace large installations Table organized execution via configuration, no programming An Argus computer from 1961 by Ferranti The 1960 s - Direct Digital Control Time Seite 22 Source: History of Control and History of PLC and DCS, Vanessa Romero Segovia and Alfred Theorin, 2013-07-26, Lunds University, Sweden

Result of design criteria's to build a standard machine controller in competition with three other companies. The ladder programming language was invented 1968 Birth of the MODICON 084 Time Seite 23 Source: History of Control and History of PLC and DCS, Vanessa Romero Segovia and Alfred Theorin, 2013-07-26, Lunds University, Sweden

The number of transistors we can fit on a chip will double every 18 months Gordon Moore, Intel circa 1965 Seite 24

After 32 squares there are 4,294,967,295 grains of rice on the board (about a field s worth ) After 64 squares there are 18,446,744,073,709,551,615 (much, much more than all the rice ever produced) Ray Kurzweil s Second Half of the Chessboard Seite 25

The Second Half of the Chessboard The Power of Exponential Growth With IT we entered the second half of the chessboard in 2006 1958 1961 1964 1967 1970 1973 1976 1979 1981 1984 1987 1991 1994 1997 2000 2003 2006 1996 ASCI Red 1.06 Teraflops 2006 PS3 1.8 Teraflops Seite 26

From Industry 1.0 to Industry 4.0 First Industrial Revolution Based on the introduction of mechanical production equipment driven by water and steam power Second Industrial Revolution Based on mass production achieved by division of labor concept and the use of electrical energy (electrification) Third Industrial Revolution Based on the use of electronics and IT to further automate production (automation) 3.0 1784: First mechanical loom 1870: First conveyor belt, Cincinnati slaughterhouse, 1908: Ford T-Model 1969: First programmable logic controller (PLC) Modicon 084, 1800 1900 2000 2025 Time Seite 27

5% 3% 2% <1% Seite 28

A man goes broke gradually and then suddenly Ernst Hemingway Seite 29

Change comes gradually and then suddenly especially in a digital world Seite 30

What to do? Seite 31

Industrie 4.0 An initiative of the German industry sponsored by the German Government This initiative has elaborated recommendations for the manufacturing Industry how to better prepare the future in order not to get out of the business Source: acatech, April 2013 Umsetzungsempfehlung für das Zukunftsprojekt Industrie 4.0 Seite 32

From Industry 1.0 to Industry 4.0 First Industrial Revolution Second Industrial Revolution Third Industrial Revolution Fourth Industrial (R)Evolution Based on the introduction of mechanical production equipment driven by water and steam power Based on mass production achieved by division of labor concept and the use of electrical energy (electrification) Based on the use of electronics and IT to further automate production (automation) driven by Digitalization, Integration and enhanced Flexibility 1784: First mechanical loom 1870: First conveyor belt, Cincinnati slaughterhouse, 1908: Ford T-Model 1969: First programmable logic controller (PLC) Modicon 084, 1800 1900 2000 2025 Time Seite 33

The Industrie 4.0 initiatives Future challenges in industry Shorter time to market Increased flexibility in volatile, heterogonous, global markets Optimized productivity Energy and resource efficiency Mitigation of demographic change Continuous, safe and reliable operations DIGITALIZATION Research areas Horizontal integration of the value-add networks Vertical integration and networked production systems Seamless integration of the engineering along the entire life-cycle Cyber Physical Systems (CPS) Reference architecture model Integration of human creativity and innovativeness Seite 34

Siemens terms its approach to Digitalization in industry and its way towards Industrie 4.0 the Digital Enterprise Seite 35

Process Industries needs to face market dynamics that require increasing flexibility, faster market readiness and improved productivity Process Industries Key drivers and specifics Time to market Flexibility Output Efficiency Costs From idea to production Ramp-up of plant Individualized products / quantities Different feedstock Demanded product / quantity Productivity Operational excellence Resources Long plant lifecycles (> 40 years) with highly fragmented data landscape Continuous, safe and reliable operations Need to address different feedstock, markets and quantities Lack of operators and digital natives as next generation Seite 36

Digitalization is next level to yield productivity within Process Industries Process Industries Electrification, Automation and Digitalization as levers to increase productivity Technological driver Computing power Communication New sensors Virtualization Cloud computing Simulation Electrification Different initiatives, e.g., Industrie 4.0 Industrial Internet Consortium (IIC) Made in China 2025... Automation Digitalization Digital Enterprise Integrated Engineering and Integrated Operations TIA@Process Industry Perfect interaction of all components along the life cycle TIP@Process Industry Electrical power wherever and whenever Next level of productivity Experienced partner for Automation and Electrification Pioneer for Digitalization in industry Time Seite 37

Workflows in process / discrete industry differ Digital Enterprise Process Industries Discrete Industries Product design Process & plant design Engineering & commissioning Operation Services Product design Production planning Production engineering Production Services Product design starts in the laboratory Process design P&ID Detailed engineering electrics, DCS engineering, piping, 3D plant design Sensors: temperature, pressure, flow, weight, analytics, Actuators: pumps/agitators, valve positioners, heating/cooling Hazardous/explosive environment Product design and Production planning in CAD/CAE Machine and Line Automation driven by mechatronic CAD/CAE Sensors : proximity, encoders, position, motion Actuators: hydraulics, servo-motors, linear drives Seite 38

Siemens portfolio for Digital Enterprise covers complete lifecycle Digitalization Different forms in industries Process Industries Digital Enterprise Hybrid Industries Discrete Industries Product design Process & plant design Engineering & commissioning Operation Services Product design Production planning Production engineering Production Services COMOS COMOS Data Driven Services / XHQ / ASM Teamcenter NX Tecnomatix MCD Data Driven Services Manufacturing Execution Systems SIMATIC IT PIA Selector Communication / Security SIMATIC PCS 7 / SIMIT Automation / Instrumentation and Drives Portfolio TIA Portal Communication / Security TIA: Totally Integrated Automation SINUMERIK Integrate Automation / Drives Portfolio Seite 39

Siemens enables Digitalization both in Process Industries and Discrete Industries as basis to create a Digital Enterprise Digitalization Different forms in industries Process Industries Digital Enterprise Hybrid Industries Discrete Industries Product design Process & plant design Engineering & commissioning Operation Services Product design Production planning Production engineering Production Services Seite 40

The Cornerstones of Industrie 4.0 also address challenges in process industries Industrie 4.0 is originally driven by discrete industries but also valid for process industries with a specific interpretation Horizontal integration through value-add networks* Vertical integration and networked production systems* Seamless integration of the engineering along the entire life-cycle* Optimization of resources along value-add networks from raw materials to product Remote operations via Internet Cloud computing Data driven services, e. g. predictive maintenance Increased flexibility and optimization of production in volatile and global markets Integrated Operations Plant Asset Management Seamless interoperability (Plug&Produce) Decision support / assistance systems Time savings in engineering by consistent data storage along plant life-cycle Integrated Engineering Augmented reality Digital Twin of the as-is -plant status On-site training simulation Seite 41 Modelling and Simulation Seamless interoperability and communication based on standards Cyber Security / Industrial Security *) Source: acatech, April 2013 Umsetzungsempfehlung für das Zukunftsprojekt Industrie 4.0

Siemens provides products, solutions and services for industry customers on their way to Industrie 4.0 Enterprise Manufacturing Intelligence Engineering, Design Tools & Simulation Customer Relationship Management Lifecycle Data Management (cpdm) for Product and Production Digital Manufacturing/ Production Global Communication Infrastructure Enterprise Resource Planning Manufacturing Operations Management Industrial Control Systems Supply Chain Management Asset Management Maintenance, Repair & Overhaul Sensors & Actuators Factory Infrastructure Machinery Industrial Communication & Security Tools & Fixtures Enterprise IT Infrastructure Material The Digital Enterprise today Domains covered by Siemens portfolio for industry Human Resources Public IT Infrastructure (Internet) Siemens as partner for I4.0 With SIMATIC Siemens is a pioneer in automation since 1958. We are also your partner for future challenges to address core elements of I 4.0, such as Supporting the digitalization of the plant with an integrated software suite Seamless integration along the plant s life cycle based on our best-in-class portfolio Enabling flexible production as the leading automation vendor worldwide Realizing future needs on industrial communication networks Driving for standardization like e.g., PROFINET, IEC, PLCopen Providing value-adding, industry specific services Seite 42

Siemens realizes Digital Enterprise for Process Industries through Integrated Engineering and Integrated Operations Breadcrumb Digital Enterprise Topic for Process Industries Focus of Siemens Integrated Engineering optimizes engineering and life cycle management Integrated engineering tools Simulation Common data model Cloud-enabled services and analytics Next generation of Control Digitalization of field level Reliable connectivity Integrated Operations improves productivity and flexibility Product design Process & plant design Engineering & commissioning Operation Service Seite 43

Integrated Engineering addresses further integration along the life cycle, simulation and augmented reality based on a common data model Integrated Engineering with Siemens Today and future vision Integrated Engineering Today Vision 2D Automation 3D Integrated Engineering across all disciplines; engineering tools interlinked with automation and field devices, e.g., instrumentation and analytics Increased level of integration and interoperability of engineering tools with automation and field level across all workflows and disciplines Simulation and 3D visualization enable e.g., authoring, virtual commissioning or operator training and assist maintenance Increasing importance of 3D application and strong combination with 2D. Augmented reality in plant supports operators Digital twin of real plant in as-is quality integrating plant and process data based on common data model Open architectures and interfaces for new ways of collaboration (software deployment platforms, collaborative engineering) Product design Process & plant design Engineering & commissioning Operation Service Seite 44

A common data model is enriched along the life cycle and ensures consistency during all workflows Integrated Engineering with Siemens Common data model Detail Engineering Commissioning Basic Engineering Process Design Modernization Operations Plant hierarchy Mass-/ energy balance Process flow diagram Simulation model P&ID Electricals Instrumentation Piping Automation As built documentation KPIs and alarms Maintenance data (MRO) One common data models along the life cycle to integrate plant and process data Product design Process & plant design Engineering & commissioning Operation Service Seite 45

Change comes gradually and then suddenly especially in a digital world Siemens and other visionary customers have already started their journey Siemens has proven that our open platform enables revolution through evolution Seite 52

Thank you! COMOS Making data work siemens.com/comos Thomas Andersson Technical Sales & Business Development, Nordics Mobile: +46 709 353 558 E-mail: thomas.andersson@siemens.com